Composites Market

[308 Pages Report] The global composites market size is estimated to be USD 88 billion in 2021 and is expected to reach USD 126.3 billion by 2026, at a CAGR of 7.5% from 2021 to 2026. The composites market is growing because of the rise in the demand from wind energy, aerospace & defense, and automotive & transportation industries.  However, owing to COVID-19, the sales of various industries has declined, resulting in reduced demand for composites.

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Impact of COVID-19 on global composites market

COVID-19 has negatively affected the demand for composites across the globe due to decrease in demand from various end-use industries. Aerospace & defense being one of the major consumer of composites has witnessed the most adverse and immediate consequences of the pandemic. The airline sector has faced the worst consequences due to the lockdown across international and domestic borders. This has impacted badly on the demand of composites.

Global composites market Dynamics:

Drivers: Government stimulus packages to drive the composites market post COVID-19

It is important to contain the infection to minimize the negative impact on the economy. Countries have announced various steps to contain the virus spread, support consumer spending, and spur economic activities. China, the first county affected by COVID-19, has announced a USD 180 Billion financial stimulus package for epidemic prevention, production of medical equipment, insurance disbursement, and tax relief, among others. The government has also announced USD 430 billion liquidity infusions into the banking system to support micro and small industries. Reduction in repo and report rates are other measures taken to support the business activity in the country.

Restraints: Lack of standardization in manufacturing technologies

Manufacturing and non-recurring development costs continue to limit the penetration of composites in several applications such as sporting goods, marine, and consumer goods. Design consistency, process standardization, and maintenance technology are the major issues of concern. The lack of standardization of material and methodologies compels the manufacturers to consider conservative designs, which hampers the mass production and economic performance of automobiles and aircraft. In addition, limited human resources with training and experience in composites restrain broader applications of composites

Opportunities: Increasing demand in emerging economies

Traditionally, the glass fiber and carbon fiber composites industry was concentrated in Japan, North America, and Europe. However, in recent years, there has been a significant shift toward the emerging economies in APAC and Rest of the World. For instance, the demand for glass fiber and carbon fiber composites in aerospace, wind energy, and transportation sectors has increased in the emerging economies, such as India, Brazil, and China, due to the strong demand for low-cost carriers. Countries, including China, have launched a number of research projects involving glass fiber and carbon fiber composites, and its rapid industrialization is likely to accommodate the increase in demand. Moreover, with the rapid economic growth and industrialization in the emerging nations, cyclic industries such as automotive, pipe and tanks, and construction and infrastructure are expected to grow rapidly, driving the demand for GFRP and CFRP. Further, for the upgradation, maintenance of existing infrastructure and the creation of new cities with water treatment facilities, the demand for composites in the construction & infrastructure industry as well as in pipes & tanks is expected to grow during the forecast period.

Challenges: Developing low-cost technologies

The high cost of composites has been an important point of concern associated with its increasing use in structural applications. The real potential of composites has not yet been realized owing to R&D costs, high manufacturing costs, and increased cycle times. Many applications of aerospace composites have been discovered, but due to high-cost constraints, commercialization of these applications is yet to get started. Owing to the high R&D costs, developing low-cost technologies is a major challenge for all the researchers and key manufacturers.

In terms of volume, automotive & transportation industry has the largest market share in the global composites.

The saving in weight for a given level of strength makes the use of composites vital in the automotive & transportation industry. The automotive and rail sectors are focused on reducing weight and increasing the efficiency of vehicles and exploiting more advanced materials. Due to COVID-19, automobile manufacturers across the globe are facing several challenges. The US, Japan, South Korea, Italy, Germany, and the UK were the most affected countries, which are the major automotive & transportation manufacturing countries. The majority of the automobile manufacturers has witnessed a direct impact of the pandemic situation on their 2020 revenue.

Glass fiber is the major segment of the market in terms of value and volume.

Owing to its superior attributes, such as strength, flexibility, durability, stability, low weight, and resistance to heat, temperature, and moisture, glass fiber is used for different applications in the construction, wind energy, pipes & tanks, marine, and transportation industries. It is used in different applications, such as underbody systems, deck lids, front end modules, bumper beams, engine covers instrument panels, and air ducts in the transportation industry. The demand in for glass fiber-based composites has suffered a setback due to the outbreak of COVID-19 in the major glass fiber composite manufacturing countries- India and China.

Thermoset resin is the largest segment of composites in terms of value and volume.

Thermoset dominated the composites market in the resin type segment. Thermoset composites are very durable and low on maintenance because of their rigid inter-linking molecular structure, inert chemical composition, and resistance to ultraviolet and chemical attack. However, due to COVID- 19, the demand for thermoset resins from wind energy, automotive & transportation, aerospace & defense, pipes & tanks, and other industries showed a decline.

Lay-up process accounted for the largest share in terms of value and volume

Orientation of the fibers can be controlled as per the need, so that they can absorb maximum stress to which they are subjected. This method is popular among the manufacturers because it is a low-cost method and has advantages such as quick deposition of fiber & resin and ease of operation. The lay-up process is used for designing simple enclosures and lightly loaded structural panels usually. Aerospace & defense, construction & infrastructure, wind energy, and marine end-use industries have the maximum demand of this method. The lay-up process is further categorised into three types, namely, hand lay-up, tape lay-up, and spray lay-up. Hand lay-up is the most common and most cost effective used process for manufacturing composites. It is used in the production of large components such as wind turbine components, concrete forms, and aircraft radomes.

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APAC held the largest market share in the composites market in 2020.

APAC is the major consumer of composite owing to high demand from China, Japan, India, and other countries. Major end-use industries of composites in the APAC market include construction, automotive and transportation, aerospace & defense, and wind energy among others. Advancements in technology, regulatory policies, and government norms are some of the major factors driving the composites market in APAC. However, COVID-19 pandemic reduced the demand for composites in the region.

Key Market Players

The key players in the global composites market are Owens Corning (US), Toray Industries, Inc. (Japan), Teijin Limited (Japan), Mitsubishi Chemical Holdings Corporation (Japan), Hexcel Corporation (US), SGL Group (Germany), Nippon Electrical Glass Co. Ltd. (Japan), Huntsman International LLC. (US), and Solvay (Belgium). These companies are involved in adopting various inorganic and organic strategies to increase their foothold in the composites industry. The study includes an in-depth competitive analysis of these companies in the composites market, with their company profiles, recent developments, and key market strategies.     

Recent Developments  

• In June 2021, Solvay S.A. partnered with Italian UAM company Novotech and will be providing access to its range of thermoset and thermoplastic composites and adhesive materials. It will also provide dedicated technical support to develop the structure of its hybrid Seagull water landing aircraft's second prototype due to fly in late 2021.
• In June 2021, Hexcel Corporation announced the successful maiden flight of a lightweight camera drone, developed using Hexcel HexPly carbon fiber prepregs. The composite drone was developed by a team of students from the University of Applied Sciences Upper Austria in Wels with composite materials supplied by Hexcel Neumarkt in Austria
• In September 2021, Hexcel Corporation announced an expansion at its existing engineered core facility in Casablanca, Morocco, at the Midparc Free Trade Zone Industrial Park that will double the size of the plant and will lead to an increase in overall employment.
• In May 2021, Toray Industries, Inc. developed a high thermal conductivity technology that lifts the heat-dissipating properties of carbon-fiber-reinforced plastic (CFRP) to that of metals.

Composites Market Report Scope

This research report categorizes the composites market based on fiber type, resin type, manufacturing process, end-use industry, and region.

By Fiber Type:

• Glass Fiber Composites
• Carbon Fiber Composites
• Natural Fiber Composites
• Other Fiber Composites

By Resin Type:

• Thermoset Composites
• Thermoplastic  Composites

By end-use industry:

• Aerospace & defense
• Wind Energy
• Automotive & Transportation
• Construction & Infrastructure
• Marine
• Pipe & Tank
• Electrical & Electronics
• Others

By Manufacturing Process:

• Lay-up
• Filament Winding
• Injection Molding
• Pultrusion
• Compression Molding
• RTM
• Others

By region:

• North America
• Europe
• APAC
• MEA
• Latin America

Recent Developments  

• In June 2021, Solvay S.A. partnered with Italian UAM company Novotech and will be providing access to its range of thermoset and thermoplastic composites and adhesive materials. It will also provide dedicated technical support to develop the structure of its hybrid Seagull water landing aircraft's second prototype due to fly in late 2021.
• In June 2021, Hexcel Corporation announced the successful maiden flight of a lightweight camera drone, developed using Hexcel HexPly carbon fiber prepregs. The composite drone was developed by a team of students from the University of Applied Sciences Upper Austria in Wels with composite materials supplied by Hexcel Neumarkt in Austria
• In September 2021, Hexcel Corporation announced an expansion at its existing engineered core facility in Casablanca, Morocco, at the Midparc Free Trade Zone Industrial Park that will double the size of the plant and will lead to an increase in overall employment.
• In May 2021, Toray Industries, Inc. developed a high thermal conductivity technology that lifts the heat-dissipating properties of carbon-fiber-reinforced plastic (CFRP) to that of metals.

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